The tariff value on imported gold was at USD 396 per 10 grams and for silver it was at USD 561 per kg in the second fortnight of December 2014.

The import tariff value is the base price at which customs duty is determined to prevent under-invoicing. It is revised on a fortnightly basis taking into account global prices.

The reduction in tariff value on imported gold and silver has been notified by the Central Board of Excise and Customs, an official statement said.

Globally, gold and silver prices were volatile towards the end of 2014. In London, gold prices ruling down at USD 1195 an ounce and silver at USD 15.97 on December 31.

Last month, India -- the world's largest consumer of gold -- further eased import curbs by scrapping the controversial 80:20 scheme, under which importers were mandated to export 20 percent of the total exports.

A recent report commissioned by Wold Gold Council (WGC) has suggested that India should move beyond import curbs and should come up with a national gold policy to put an estimated 22,000 tonnes of idle gold assets into active use.

The report also recommended launch of several investment products, establishment of a Gold Board for managing import-export, develop accredited refineries, drive gold monetisation by incentivising banks and introduce compulsory quality certification of gold.